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Nanotechnology a UK Industry View

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Alongside this, four Knowledge Transfer Networks Nanotechnology, Materials, Chemistry Innovation and Sensors and Instrumentation with significant industrial interest in nanotechnology ag

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Dr Matthew Thornton Materials KTN / Materials UK

Dr Robin Young Materials KTN

Dr Barry Park Nanotechnology KTN

wITh SUPPORT FROM:

Dr Steve Fletcher Chemistry Innovation KTN

Darren Ragheb Chemistry Innovation KTN

Dr Colin Johnson Materials KTN

Stuart MacLachlan Materials KTN

Dr Robert Quarshie Materials KTN / Materials UK

Dr Alec Reader Nanotechnology KTN

Tiju Joseph Sensors and Instrumentation KTN

Dr Andrew Burgess AkzoNobel

Dr John Saffell Alphasense Ltd &

Chairman of CoGDEM

Dr victor higgs Applied Nanodetectors Ltd

Dr Alan Smith AZ-TECh

Dr Matthew O'Donnell BioCeramic Therapeutics Ltd

Dr Ian Pallett British water

Prof Kai Cheng Brunel University

Dr Bojan Boskovic Cambridge Nanomaterials Technology Ltd

Dr Roger Pullin Chemical Industries Association

Dr Didier Farrugia Corus

Prof Derek Sheldon Derek Sheldon Consultants Ltd

Dr Brian More Exilica Ltd

Prof Julian Jones heriot-watt University

David Kent The Institute of Measurement and Control

Dr Mark Morrison Institute of Nanotechnology

Del Stark Institute of Nanotechnology

Dr Paul Reip Intrinsiq Materials Ltd

Dr Peter hatto IonBond Ltd

Andrew Elphick Iota NanoSolutions Limited

Dr Kevin Matthews Isogenica Ltd

Dr Sam French Johnson Matthey

Dr Brendan Casey Kelvin Nanotechnology Ltd

Simon Allison Marks & Spencer Plc

Dr Neil Ebenezer Medicines & healthcare Products

Regulatory AgencyProf Ben Beake Micro Materials LtdTom warwick NanoInk Inc

Prof Terence A wilkins Nanomanufacturing Institute,

University of Leeds

Dr Mike Fisher Nanotechnology KTN

Dr Neil harrison National Physical Laboratory

Dr Piers Andrew Nokia Research Centre

Dr Gareth Wakefield Oxford Advanced Surfaces Group plc

Dr Peter Luke Pfizer

Dr Al Lambourne Rolls Royce PlcNeil Gray Scott Bader Co LtdPhil Cooper Sensors and Instrumentation KTNJonathan Foulkes Smith & Nephew Extruded Films LtdChristian Inglis Technology Strategy Board

Dr Kevin Cooke Teer Coatings Ltd

Dr Michael Butler Unilever Research ColworthProf Sergey Mikhalovsky University of Brighton

Dr Neil Bowering University of GlasgowProf David Cumming University of GlasgowProf Ping Xiao University of ManchesterProf John Gray University of ManchesterProf Peter Dobson University of OxfordProf Julian Gardner University of warwickENDORSEES

Prior to publication of the report, the following people have contacted the secretariat to endorse the report and its recommendations

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Nanotechnology is the basis for

many products that are in common

use and is providing the capability

to produce a very wide range of

new products that will become

commonplace in the near future The

UK, like many other countries, has

invested heavily in nanotechnology

and has considered, through a

series of reports and Government

responses, how to manage and fund

nanotechnology developments At the

third meeting of the Ministerial Group

on Nanotechnology it was agreed that

a nanotechnology strategy should be

developed for the UK

As part of the strategy development

process, Lord Drayson launched an

evidence gathering website on 7th July

2009 Alongside this, four Knowledge

Transfer Networks (Nanotechnology,

Materials, Chemistry Innovation

and Sensors and Instrumentation)

with significant industrial interest in

nanotechnology agreed that it was

necessary for industry to contribute to

policy development using the bottom

up approach It is intended that this

report with its unique industry led

views on nanotechnology will provide

a significant contribution to a future

overarching UK Government

Strategy on Nanotechnology,

alongside other input from inter alia

the Technology Strategy Board and

the Research Councils

Executive Summary

Feedback was sought from industry using a questionnaire and workshop discussions with invited industry leaders and others in the field of nanotechnology to gather information

on what they are currently doing and what their future needs are to create enhanced value from nanotechnology

A full review of UK and international strategic approaches was also undertaken This report considers where the UK currently sits in terms

of investment in comparison with its major industrial competitors and reviews the UK’s capability to exploit nanotechnology given the organisations and funding bodies currently in place

Future opportunities are also reviewed alongside issues that must be addressed

to ensure responsible development of nanotechnology based products

The following recommendations on Policy and Regulation, Funding, Skills and Engagement have been developed

to provide a basis for implementation

of the Government Strategy based

on this feedback and are listed below A view is also given of what the UK status on nanotechnology would be in 2020 assuming that the recommendations are followed

in the intervening years These recommendations are in line with the

UK Government’s strategy for New Industry, New Jobs which is part of Building Britain’s Future

POLICY AND REGULATION

Nanotechnology innovation and exploitation is

1

business driven The department responsible for leading and coordinating nanotechnology activities across Government should be the Department for Business, Innovation and Skills (BIS) to ensure investment provides added value for the UK

The Technology Strategy Board must implement

2

its Nanoscale Technologies Strategy with specific funded calls to deliver commercialisation of value adding nanotechnology based products

Government should address the need for

3

responsible development of all emerging technologies, including nanotechnologies, by putting in place a framework through which product risk assessments can be carried out alongside industry’s need to focus on innovation

Defra, other Government Departments, relevant

4

KTNs and trade associations should engage with industry to ensure the effective operation of a simplified Voluntary Reporting Scheme in the UK for nanomaterials and to work with

EU regulators to ensure ongoing REACh regulations take account of nanotechnology fully and effectively

Invest in key establishments and

Continue to support knowledge transfer

5

activities to deliver innovation in nanotechnology and pull through academic research into commercial applications

in nanotechnology from technician level

to develop individuals with the skills and expertise to support commercialisation of nanotechnology in the UK

ENGAGEMENT

Ensure that the general public is informed of

1

product developments based on nanotechnology

Industry and Government should engage in an

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1 Introduction

Nanotechnology provides a significant opportunity to address global challenges This is leading

to intense global competition to commercialise different products enabled by nanotechnology However,

UK industry is well placed to capitalise on this opportunity and participate in the development of many new products and services by operating alone or in collaboration with international partners Success

in this area will lead to growth in employment and wealth creation

Today, nanotechnology is evolving with some mature products and many

in the growth and developmental stage This is not unlike the condition

of computer science in the 1960s

or biotechnology in the 1980s

Nanotechnology has been applied

to the development of products and processes across many industries particularly over the past ten years

Products are now available in markets ranging from consumer products through medical products to plastics and coatings and electronics products

There have been various market reports estimating the scale of potential future value for products

that are “nanotechnology enabled”

Details of a number of these are reported in section 8 A report from Lux Research published in 2006 entitled The Nanotech Report 4th Edition1, notes that nanotechnology was incorporated into more than

$30 billion in manufactured goods in

2005 The projection is that in 2014,

$2.6 trillion in manufactured goods will incorporate nanotechnology Even

if this is an over-estimate, it is clear that there is a vast market available for nanotechnology based products

It is extremely important to the UK economy that UK companies engaged

in nanotechnology participate at each stage of the supply chain

While companies are moving speedily to develop further and more advanced products based on nanotechnology, they are becoming increasingly aware that there are many challenges to address It was with this background that a Mini Innovation and Growth Team (Mini-IGT) was formed comprising members of the Nanotechnology KTN and the Materials KTN as the secretariat together with members of the Chemistry Innovation KTN and the

Sensors and Instrumentation KTN to prepare a report on nanotechnology

on behalf of UK industry A questionnaire (see Section 2) was sent to the members of the various KTNs to solicit feedback on their views on nanotechnology focussing

on their commercial position and also their concerns and issues This report considers the status of nanotechnology

in the UK today and provides recommendations in response to the concerns and issues raised

While the UK Government has commissioned reports and provided responses over the past decade,

in the field of nanotechnology (see Appendices), the UK has not articulated an overarching national strategy on nanotechnology that can rank alongside those from the likes of the US and Germany It is intended that this report, with its unique industry led views on nanotechnology, together with other strategic documents, including the Nanoscale Technologies Strategy 2009-2012 produced by the Technology Strategy Board, will provide a significant contribution to a future UK Government Strategy on Nanotechnology

Nanotechnology is defined by

The British Standards Institution

(BSI) as the:

“Design, characterisation,

production and application of

structures, devices and systems

by controlling shape and size in

the nanoscale, which covers the

size range from approximately

1nm to 100nm.”

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2 Industry Response

to Questionnaire

A web based survey was undertaken

where answers to eight key questions

were solicited to ascertain how

important nanotechnology was to

UK industry and determine how UK

Government can assist in further

developing the commercial landscape

The specific questions were:

1 Where does your company

fit in the supply chain

regarding nanotechnology?

2 What commercial / development

products based on

nanotechnology do you have?

3 What resources are focussed on

nanotechnology based products?

4 What alliances / partnerships

do you have to exploit

nanotechnology?

5 What percentage of your sales

is based on nanotechnology

based products?

6 How long has your company

been involved in developing and/

or selling products based

on nanotechnology?

7 What Governmental funding

have you received to support

your nanotechnology business?

8 Where should company and

Government funding on

nanotechnology be focussed for

the next ten years?

The questionnaire, together with the

outputs from two workshops, has been

used to generate the recommendations

listed in the following section This section presents the outputs from the questionnaire The respondents to the questionnaire covered the entire supply chain, from fundamental research through nanomaterial producers, equipment suppliers, system integrators and end users They represented the major market sectors important to the UK economy including medical/

pharmaceutical, aerospace and defence, chemical, food and automotive

The respondents were classified as large, medium or small to medium enterprises, universities or others such

as trade associations etc (see Figure 1) As might be expected the largest segment of responses was from SMEs

However, 20% of the respondents were from large companies representing some of the UK’s leading blue chips

The SMEs generally devoted the majority of their resource to nanotechnology with many calling themselves “a nanotechnology company” With larger companies the emphasis was more on their products

or sectors viewing nanotechnology as

an enabler to a commercial product serving an established sector with multidisciplinary teams assembled as and when required Nearly all those who responded either had established relationships or were actively developing networks of partners and alliances; these were most commonly with universities to help develop the fundamental understanding of the products or with the supply chain to help delivery of commercial products

Most of the respondents had zero

or low (less than 25%) sales in nanotechnology related products (see Figure 2) This might be expected from the large number of SMEs who responded, many of which are less than

5 years old and are still in product/

process development and have yet

to bring any commercial products

to market However, some 26% of the respondents were significantly

or entirely (i.e 100% of sales) nanotechnology enabled companies

Several of the larger well established companies answering our questionnaire had a significant proportion of their business in nanoenabled products

The maturity of the commercial sales

on the whole reflected the time that most companies had been trading in nanotechnology enabled products

Some 34% of all respondents have been involved in nanotechnology for more than 10 years (see Figure 3)

Perhaps of most interest were the responses to question 8: Where should company and Government funding on nanotechnology be focussed for the next ten years? As might be expected there was a wide range of answers

However, several common themes emerged:

The UK should continue

1

to support the UK’s leading position in driving global standards for nanotechnology

Strategic longer term research

2

programmes focused on employing nanotechnology solutions for larger challenge led societal problems such as

ageing population and healthcare, low carbon economy, safety and security, with less emphasis on new nanoparticles or materials

“Joined up” thinking on EHS

3

concerns with managed programmes across the supply chain from university research

to actual practice in industry and end of life An essential component

is also providing the public with a balanced picture of the true risks and advantages of nanotechnology

Support for product development,

4

including translational development and knowledge management especially for SMEs

Some of the comments that were received included:

“E.ON believes that there are great opportunities for the development

of nanotechnology-based products particularly in renewable energy systems which will help to create a low-carbon future”

“Addressing market needs through collaborative development and knowledge exchange where companies can work together and/or access the strong UK academic base for new products and processes and where universities can strategically develop research streams based on the commercial needs of industry” Kelvin Nanotechnology

“Investment in product focussed enabling technologies and step change technologies that benefit UK plc and establish the UK as a skills centre for novel, emerging technologies.” Rolls- Royce

Figure 1

Classification of respondents to questionnaire

Figure 3

Breakdown

of the time companies had been involved with nanotechnology

Figure 2

Breakdown

of the sales based on nanotechnology enabled products

Less than 1 year

40 35 30 25 20 15 10 5

26%

59%

4%

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3.1 Policy and Regulation

1 Nanotechnology innovation and exploitation is business driven

The department responsible for leading and coordinating nanotechnology activities across Government should be the Department for Business, Innovation and Skills (BIS) to ensure investment provides added value for the UK

To ensure commercial success for the UK in nanotechnology, BIS should be the champion for nanotechnology and collaborate with other departments and agencies including Defra, Research Councils, Environment Agency, Health and Safety Executive, Health Protection Agency and Department of Health amongst others

2 The Technology Strategy Board must implement its Nanoscale Technologies Strategy with specific funded calls to deliver commercialisation of value adding nanotechnology based products

Investment in nanotechnology must be industry led and focussed on taking practical, useful and valuable research through to commercialisation i.e from fundamental research through prototyping and pilot manufacturing to full scale manufacturing This means that the Technology Strategy Board

has to focus on industrial needs, especially those identified within the Grand Challenges, and work alongside other funding bodies including the Research Councils

to bring organisations and companies together to exploit novel technologies quickly and effectively

3 Government should address the need for responsible development

of all emerging technologies, including nanotechnologies, by putting in place a framework through which product risk assessments can be carried out alongside industry’s need to focus

at a point in the development cycle before revenues have been generated It should be noted that the chemical legislation REACH (Registration, Evaluation, Authorisation and restriction of Chemicals) has the framework for

3 Recommendations

to Government

developing this for nanomaterials during their research and development phase

This recommendation is in line with Government’s interests in this area as noted in the Statement

by the Government about Nanotechnology published in February 2008 where they state its vision for nanotechnologies

to be: “for the UK to derive

maximum economic, environmental and societal benefit from the development and commercialisation

of nanotechnologies, and to be in the forefront of international activity

to ensure there is appropriate control of potential risks to health, safety and the environment”.

4 Defra, other Government Departments, relevant KTNs and trade associations should engage with industry to ensure the effective operation of a simplified Voluntary Reporting Scheme in the UK for nanomaterials and to work with EU regulators to ensure ongoing REACH regulations take account of nanotechnology fully and effectively

The Voluntary Reporting Scheme,

to monitor and regulate the use of nanotechnology based materials and products, has advantages but needs to be simplified for industry to participate Imposing

a Mandatory Scheme is fraught with difficulties both in terms

of definition and in terms of

monitoring and policing what has or has not been reported

It will also stifle UK innovation and competitiveness if imports are not required to comply with

a UK based mandatory scheme

Sanctions for not reporting would have to be made clear Further, any scheme has to be EU-wide and subject to EU regulations including REACH

3.2 Funding

1 Provide more accessible and commercially focussed funding for SMEs as well as larger companies engaged in the development of nanotechnology based products to support innovation in the UK

No mechanism exists to ensure continuity of funding developments through to commercialisation The need for small scale funding is evident from the interest from industry in the recent Technology Strategy Board Beacons call Larger collaborative R&D funding is not always suitable for pre-product demonstrator

or proof of concept to drive research through the Technology Readiness Levels To complement Technology Strategy Board funding the Research Councils should fund more industrially relevant research in this area

Industry has expressed concern that collaboration with universities leads to very low grant ratios for industry This is a disincentive for industry and in particular SME/

university collaboration and needs

to be addressed as part of the funding processes

2 Invest in key establishments and organisations to build world class capability in nanotechnology product development

Focus on centres capable

of delivering world class nanotechnology research and development, risk assessment and characterisation through

to manufacturing Invest in and drive to international success centres that can be (or already are) world class To do this the

UK could learn from the German Fraunhofer model, for example

by creating critical mass through consolidation of existing facilities and organisations

3 Provide funding for cross-sectoral initiatives to apply developments achieved in one sector to other sectors and applications

Developments based on nanotechnology in one product area may be transferable to other product areas Ensuring this happens efficiently can provide significant added value for the UK

4 Continue to invest in standardisation activities to maintain UK leadership in creating international standards for nanotechnology and National Measurement System facilities

This will ensure that the UK maintains its influence in defining

This report, informed and led by

the UK’s nanotechnology industry,

recommends that the following

are paramount to the successful

exploitation of nanotechnology in

the UK These are listed under four

headings and under each heading the

recommendations are ranked in order

of importance These recommendations

focus on areas where Government can

make a significant difference

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develop individuals with the skills and expertise to support commercialisation of nanotechnology in the UK

Training of the UK workforce through Professional Development (PD) is essential

as an innovation led economy is going to require a highly skilled workforce The need is for a range of courses including short courses on specific areas of nanotechnology which should

be coordinated through the appropriate Sector Skills Councils

3.4 Engagement

1 Ensure that the general public is informed of product developments based on nanotechnology

Industry, trade associations and professional bodies should provide “technology champions”

to engage with the public on the benefits of nanotechnology and ensure that any potential concerns are understood and that responses from Government, academia and companies are balanced and factual

2 Industry and Government should engage in an evidence based dialogue with the Unions and Non-Governmental Organisations (NGOs)

Unions and NGOs need to be provided with scientific evidence

standards for “nano” through

the work conducted by BSI and

in association with CEN, ASTM

and ISO Emphasis should also

be on developing and promoting

measurement techniques

in support of technology

requirements for standards This

investment is required in the

short to medium term given that

there is not a critical mass of

nanotechnology based industry to

support this activity

5 Continue to support knowledge

transfer activities to deliver

innovation in nanotechnology and

pull through academic research

into commercial applications

Knowledge Transfer Networks

must continue to collaborate with

industry to deliver innovation

in the cross disciplinary field of

nanotechnology

3.3 Skills

1 Develop world class professional

education programmes at all

levels covering all aspects of

nanotechnology

Given the multidisciplinary

nature of nanotechnology it is

appropriate that it is covered

within existing science, technology,

engineering and mathematics

It is crucial that this success follows through to commercialisation and the key to exploitation of this technical base is considered in this report with

a series of recommendations provided

in Chapter 3 It is believed that only if these recommendations are followed then the UK can become a successful player in the commercialisation of nanotechnology leading to significant societal and economic benefits Below

is a list of how the UK may be viewed

in 2020:

• World class and integrated nanotechnology centres derived from the original set of MNT centres

• Body of UK trained scientists, engineers and managers capable of ensuring significant growth in commercialisation of nanotechnology based products

• Research Council and other Government funded programmes focussed on next generation nanotechnologies addressing Grand Challenge needs

• Thriving nanotechnology SME community working with Government ensuring funding is directed in a timely fashion to grow value-adding nanotechnology based businesses

• International regulation for nanotechnology agreed and understood by all with definitions and standards the basis for the regulation

• The UK embedded in strong international nanotechnology business collaborations

• Acceptance that processes for risk assessment and life cycle analysis for nanotechnology are

no different in principle than for other technologies, and are conducted as a matter of standard practice by companies developing nanomaterials or nanotechnology based products

• Family of nanotechnology based drugs and diagnostics products developed in the UK that ensure that the UK remains at the forefront of providing health benefits through its world class pharmaceutical businesses

• Family of nanotechnology based products developed in the UK that contribute to the Low Carbon Economy

• Public understanding that nanotechnology like any other technology has its benefits and risks and that these are considered and managed as part of the development of any nanotechnology based product

• The UK recognised as a leader within The Organisation for Economic Co-ordination and Development (OECD) with respect to best practice in the development, manufacture and risk management of nanotechnology based products

• UK led robust platforms for metrology and modelling

and data as a sound basis for dialogue There is also a need for NGOs to produce their own data

in support of their arguments to understand potential issues that need to be addressed

3 Provide support for two-way international collaboration to gather and share an information base on nanotechnology

As nanotechnology is a global industry, international collaboration is essential for its exploitation The provision of this could come through inter alia UK Trade and Investment (UKTI), the Science and Innovation Network, Technology Missions and the Technology Strategy Board

4 Government and industry should assist banking and insurance companies in understanding nanotechnology to enable sound investments to be made

Banks and insurers need to be provided with evidence based commercial information including environmental, health and safety data on which to base investment and insurance decisions

in support of ongoing nanotechnology business needs

• A comprehensive standards infrastructure to support industry and other stakeholders

• UK developed nanotechnology based products manufactured in the Developing World for local use to address major health and welfare issues

• The UK recognised as the leading centre for investment management and financial products related to nanotechnology

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Nanotechnology in the UK has to

be viewed in the context of world

wide activity in the field Details of

the approaches taken by different

countries are in the Appendices

The UK is not alone in determining

a strategy for nanotechnology and

has produced strategies by and for

the Research Councils2 and the

Technology Strategy Board3 However,

there is no overall strategy for

nanosciences and nanotechnology

6 Size of UK Industry

The analysis of the UK’s industrial and academic capability was based on data provided by the Nanotechnology KTN This included the Nanotechnology KTN directory along with various contact databases provided by Nanotechnology KTN staff These various databases were merged and further analysis carried out to present as comprehensive

a picture as possible of the UK nanotechnology capability landscape

There are a number of issues associated with this information that should be considered, namely:

• The limitations in the way that the Nanotechnology KTN database reflects the reality of the UK’s nanotechnology industrial base – many companies that are known

to have nanotechnology capability are missing and, in addition, there are companies on the database that could be suppliers but do not have any actual nanotechnology capability

• Many of the companies listed

in the database are suppliers

or potential suppliers to nanotechnology companies rather than actually having capability in this area

• The Directory is self-selecting

so many companies that have nanotechnology capability or expertise have chosen not to be included

• The focus is on SMEs so many of the larger UK companies active in this area are missing

The final industrial database contained over 800 companies although, realistically only about one quarter of these are companies for which nanotechnology makes up a significant proportion of their business

Nonetheless, the following analysis gives

a feel for the UK’s nanotechnology capability and areas of expertise

There is a core base of ca 100 nanomaterials companies, consisting

of mostly users and a small number of manufacturers, who are active in the

UK Figure 4 shows the distribution of these companies by activity

This clearly shows that, by far, the largest number of companies are active in thin films and nanocoatings,

with 35 companies indicating this as

an area of expertise This is followed

by biological nanomaterials, with 23 companies, and then a cluster of companies with expertise in a range

of nanomaterials specifically carbon based nanomaterials, nano-inorganics, nanoparticulate metals and alloys and nano-ceramics

In addition, there are 23 companies indicating capability in nanoelectronics and a further 12 MEMS companies It

is our view that this final figure is low and this may be a reflection of the fact that the Nanotechnology KTN database is self selecting and some companies may have chosen not to include themselves on it

Figure 4

UK Nanomaterials Companies by Activity5

5 International Approaches to

Nanotechnology Strategy

and this report and subsequent work should form the basis of such a strategy that will lay out the

UK approach and basis for future investment in this burgeoning area

of technology It is crucial that this

is done promptly and clearly as the information in the Appendices summarises the efforts of other countries and confirms that the UK lags behind countries such as South Africa4 in relation to ‘nano’ strategy

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6.1 Nanotechnology Support

Infrastructure

In addition to the nanomaterials and devices companies, there are a large number of companies that could be classified under support infrastructure

As has already been discussed, many

of these companies have indicated that they are suppliers of products and services to nanotechnology producers and users That is not to say that they have actual nanotechnology capability so Figure 5 should be viewed with that in mind

6.2 Nanotechnology Applications

The final piece of analysis was to determine the market application focus of the companies on the database This is shown in Figure 6

In addition, as was highlighted previously, the UK also has a strong emerging capability in large area electronics, the manufacture of which requires highly specialised inks and coatings In the area of ICT hardware,

an emerging UK strength is in printed, large area electronics, the advancement

of which will rely strongly on nanoscale technologies There could, therefore, be

an excellent opportunity for the UK

to gain a real competitive advantage

in this area through a multi disciplinary approach to novel design, development and commercialisations, for example, low power lighting and displays In addition, there has been significant public investment in the development

of nanoelectro-mechanical systems (NEMS) and nanosensors, especially in academia To date this has not however been exploited to any great extent

There is therefore a good opportunity

to exploit these technologies and capabilities in the shorter term, for example in areas such as photonics and plastics electronics

Similarly, in the sensors area, the UK has a competitive strength in sensor technologies for measurement, monitoring and control both in academia and industry so it is not surprising that a micro and

nanotechnology capability in this area

is apparent

The UK life sciences industry is also a major success story – the pharmaceutical industry alone produced annual exports of £17.2 billion in 2008 When one then adds the major biotech activity, which

is second only to the US, and the medical device sector, the UK is a leading powerhouse of innovation and commercialisation in this area

In order to ensure the UK remains a world leader in this sector, government, academia and industry must adopt, develop and support the next wave

of technology, which can deliver the products of the future Nanotechnology

is one area that promises to provide that necessary innovation

Accurately predicting future markets

is a significant challenge within in the medical nanotech field and some of the figures placed in the public domain appear huge beyond imagination

However, as the regulatory pathway becomes clearer and companies start

to gain approvals, nanotechnology will become more main-stream in healthcare and life sciences and its share of the market will increase significantly A comparison with the biotech industry could be drawn here Twenty years ago biotechnology had similar issues as nanotech faces now It was seen as not having a clear regulatory pathway and not being able to be handled by the existing pharmaceutical company manufacturing capabilities and supply chain Adoption

of the technology therefore became

an issue Now (prior to Roche’s recent purchase of Genentech) two of the top twenty pharmaceutical companies

in the world are biotechnology companies and two of the top ten blockbuster drugs are biologics

There are signs that this could be repeated with nanotechnology once the benefits are demonstrated and a route to market becomes clear There are now around 30 nanoenabled drugs

on the market, representing $30B in revenue These are first-generation nanoenabled drugs, i.e reformulations

of generic products As the regulatory and adoption pathway becomes clear, the second-generation products should appear, where the nano element provides targeting, or sensing functionality

Healthcare and life sciences presents a major opportunity for nanotechnology and nanoenabled products This is, however, a very wide ranging sector and within it, there are distinct sub-sectors with very different supply chains Considering UK capability there are three areas that offer the greatest potential opportunities, namely drug delivery, drug discovery tools and medical devices (including diagnostics)

In these sectors the UK has worldwide recognition Significant progress has been achieved through strong cohesion between leading academic groups and industry, but there is intense international competition that threatens to draw talent, businesses and intellectual assets from the UK

Nanotechnology can be used on the large scale in high throughput industries such as the steel industry For example, new strong bainitic steel could be made from structures analogous to carbon nanotubes Nano-injection during casting may also provide large scale potential benefits

ug Deliv

eryFibre OpticsFuel CellsPlastic P ackaging Speciality Chemicals

PackagingSolar Cells Sensor

s Composites Catal

ysts Displa ys

Textiles and Clothing Data Stor age

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8.1 International Context

UK Government spending must be seen in the context of worldwide spending in the area Lux Research state that Government spending in North America, Asia and Europe are significant (US$1.1B to US$1.7B each in 2005) on researching and developing nanotechnology

Similar amounts are invested by industry in each region In 2006 worldwide funding for nanotechnology reached US$11.8B, which is a 13%

increase from 2005 according to the latest report by Lux Research This is

an indication that nanotechnology is viewed as a serious and important element to the world’s future economy

Newer players are also entering the field with some heavy commitments

For example, it has recently been announced that a nanotechnology funding programme in Russia has just been approved8, making it the largest

in the world, with $3.95B earmarked until 2015

The German Government has supported nanotechnology since the 1980s, and Germany is now the leading player in nanotechnology in Europe in terms of funding, number

of companies and dedicated research centres Germany ranks among the top four nanotechnology locations worldwide Its position is based on a

well structured R&D infrastructure and high levels of research in the various subfields of nanotechnology

The industrial base for utilising the results of this research is also in place

Public nanotechnology funding in Germany is mainly distributed through the country’s network of research institutes – Fraunhofer, Max Planck, and Leibniz – and universities German research institutions are global leaders

in nanotechnology-related basic research The institutes are an effective interface between basic research and industry, helping to transform basic research into applications Funding bodies include the BMBF, the research foundation DFG, the Fraunhofer Gesellschaft and Max Planck Institutes,

the Volkswagen Foundation, and the German States

According to the German Government there are 1,000 plus companies active in the field, with

an estimated €420M public-sector investment in 2008 Germany is also home to numerous global nanotechnology players such as BASF, Bayer, Siemens, Carl Zeiss and Evonik

8.1.1 PUBLIC FUNDING RATIOS FOR NANOTEChNOLOGY R&D

Table 1 shows the estimated public sector funding for nanotechnology R&D in 2008, based on official Government websites and documents from each country6 This shows the actual level of funding in US $ as well

7 Diversity of Business

Nanotechnology is relevant to many

branches of materials, electronics,

chemistry, biology, medical science

and engineering This leads to

some problems in regulatory

approaches because the wide range

of applications and approaches

naturally lends itself to different sets

of requirements according to the

industry context

It should be pointed out there

are many industries which have

been using nanotechnology for

decades even before the term

“nanotechnology” had been coined

For example, carbon black and silica are both produced and used in large volumes

Many sectors involve products which are formulations, often including fine

or colloidal particles These include personal care, cosmetics, household products, food, coatings, inks, dyes, additives for fuels and lubricants and pharmaceuticals The incorporation

of nanoparticles into such products, compared with similar materials as larger “fine” particles, holds out the

8 Investment to Date

Table 2

Corporate funding for nanotechnology6

Country Actual funding

levels Funding levels per capita

Country Actual funding

levels Funding levels per capita

Nanomaterials can be considered

in the following categories – the two large volume commercial nanomaterials, carbon black and silica; nanoparticles including metals and metal oxides; nanotubes and nanofibres; quantum dots;

nanocapsules; nanowires; graphene;

nanostructured materials and coatings and surfaces Details of these are found in the Appendices

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as the funding levels per capita The implications are clear – the UK public sector funding is lagging behind our global competitors both in terms of the absolute spend and in terms of its per capita spend.

8.1.2 CORPORATE FUNDING FOR NANOTEChNOLOGY R&D

Up to date, reliable data on corporate funding is not readily accessible Lux Research1 however, produced a report

in 2005 which estimated corporate nanotechnology R&D spending in US$ Although now four years old, it does give an indication of the levels of relative spend in the UK and each of the international comparators Again, this data is presented as actual funding levels and per capita funding levels and

However, when the funding is considered on a per capita basis, Japan clearly moves into a dominant position

Like many areas of technology, Japanese companies invest heavily in R&D The World Economic Forum’s (WEF) World Competitiveness Report 2008-

2009 indicates that Japan is one of the world-leaders in the areas of “business sophistication and innovation” which

the WEF suggests is as a result of “a

high availability of scientists and engineers, high company spending on R&D and an excellent capacity for innovation” This is

reflected in the levels of spending on nanotechnology R&D

Interestingly, once again, Taiwan moves into a more dominant position, ahead

of Germany, France and the UK, when funding levels per capita are considered Where Japan is a world leader in corporate R&D spend, the

UK, in general, has a low industrial R&D spend OECD highlights that in

2006, business enterprise expenditure

on R&D was < 1.2% of GDP in the

UK compared with ~ 1.6 % of GDP

in the total OECD It is therefore not surprising that corporate funding for nanotechnology R&D is low

8.2 UK Government Spend on

Nanotechnology over the last

of MNT funding so that funding on nanotechnology according to accepted classification is likely to be less

With this proviso, the estimated Government support for nanotechnology over the last 12 years has exceeded £640M, as detailed in Table 3

As there is currently no UK strategy for nanotechnology and current support mechanisms, current spending reviews and the fact that future funding priorities will lie with the Technology Strategy Board, the Research Councils and relevant Government Departments and Agencies it is not yet possible to say how much the Government will spend on nanotechnology over the next ten years

8.3 UK Government Spend on MNT Facilities

The last five years has seen a significant cash injection from the public sector into the UK micro and nanotechnology (MNT) community including a £90M investment on the development of a new network of MNT facilities and services, of which £40M was allocated

to support and enhance collaborative research programmes and technology transfer initiatives, and £50M for capital projects and the development of the Nanotechnology KTN Details of the MNT facilities are in the Appendices

€300-400M spent in 2007

Access to EU funding through FP7 programmes can support projects that otherwise may not have been funded

by UK Government or industry alone

or in combination However, uptake of

EU funding through FP7 programmes

is weakened by the perception that the route to funding requires too much investment in proposal development against low expectations of approval

8.5 Research Council Funding

EPSRC support for nanotechnology, classified by the Socio-economic Theme in Nanotechnology EPSRC13, has amounted to £253M (since 2003) distributed over a portfolio

of some 400 projects According to the Nanoscale Technologies Strategy 2009-20123 report by the Technology Strategy Board, the main recipients of EPSRC nanoscale technology funding (2008 data) are shown in Table 4

Notable recent initiatives include the Grand Challenge for Healthcare14

£16.6M (19 projects) and the Grand Challenge for Energy15 £6.78M (2 projects)

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Nanomaterials and nanotechnologies can be applied to address most of today’s societal challenges and this leads to significant opportunities

Nanoscale technology can be considered as a set of enabling technologies, leading to novel properties which can then be incorporated into products that can

be marketed across a range of sectors

Previous estimates of the size of the market are now held to be inflated according to current thinking A more realistic view of the impact of nanoscale technologies within existing market sectors has been reported by Nanoposts18 Based on this report, the key sectors that are most likely to be impacted by nanoscale technologies and the associated market size estimates are summarised in Table 5

to grow to $85.7B by 2015

Even in this more conservative forecast, the size of the market growth available is disruptive The value of nanoenabled products produced in

2007 was estimated by Lux Research1

as $147B This is expected to reach

$1.6T in 201319 and $3.1T in 2015

These figures should be taken with a note of caution, however, as the estimated market value varies significantly depending on the source of the data This is clearly demonstrated in Figure 7

It can be seen that, despite the significant range of values (ranging from $750B in 2015 quoted by Wintergreen20 to $3,100B in 2015 quoted by Lux Research1) the market opportunity for nanoenabled products is significant with large scale commercialisation and, hence, market growth predicted to take place in

2010 and 2011 It must be clearly stated, however, that this predicted revenue is not all in addition to current revenues – many nanoenabled products will replace current

conventional products to meet increasing demands for enhanced product performance, specifically:

• Product miniaturisation

• Enhanced product functionality

• Increased product efficiency

The Ministry of Defence (MoD), Biotechnology and Biological Sciences Research Council (BBSRC), Engineering and Physical Sciences Research Council (EPSRC) and Medical Research Council (MRC) contributed funds totalling £19.4M (£3.4M, £3M, £10M and £3M, respectively) towards running the Interdisciplinary Research Centres (IRCs) in nanotechnology including those at Oxford and Cambridge Universities16

8.6 Private Funding Ratios for Exploitation of Nanotechnology

The published data for worldwide nanotechnology funding1 in 2004 showed that total European and

US funding levels have near parity

at around $3000M each but the breakdown differs: private funding

in the EU is of the order of $1300M comparing with $1700M in the US

The ratio of private funding in Japan

is still higher, with $1400M identified

This 16% drop in the number of deals is evidence to the fact that new interest in investment needs to be created if start-up nanotechnology businesses are to continue emerging There are some difficulties in identifying UK private spend in Nanotechnology UK investment in nanotechnology infrastructure and R&D has been significant in recent years The Technology Strategy Board3 points to the £150M joint investment with approximately 50%

as industrial investment as part of the Government’s initiative in the Micro and Nano Manufacturing Initiative which includes microfluidics, MEMs and nanotechnologies

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Nanoscale technology impact in

2007 ($M)

Predicted Nanoscale technology impact in

Flame retardant materials for aircraft, protective coatings, lighter body armour (CNTs)

Self repairing structures, smart uniforms, sensors for biological and chemical threat detection, electronics in spacecraft

Smart air/spacecraft

Intelligent connected world

Electronics and ICT

Magnetic nanoparticles for data storage

Electronic nanoscale materials for dielectrics

Flexible displays, nanocomposite heat management, nanowire electronic and photonic devices, nanosilver die attach

Carbon nanotube single electron transistors, non volatile random access memory, molecular diodes, single hybrid molecular device, semiconductor single electron devices (quantum dots), graphene based circuits

Molecular memory Solid state quantum computing

Security of supply/growing population

Energy

Nanocrystalline coated solar cells, nano porous aerogels, nanoparticle additives for energy efficiency

Nanocatalysts for fuel cells

Nanomembranes for fuel cells

Thermoelectric materials for heat conversion, carbon nanotube fuel cells and batteries, carbon nanotube hydrogen storage, polymer and hybrid photovoltaics

Potential for wind power applications

Ageing/growing population

Life Sciences and Healthcare

Nanotitania implants, nano-particle drug delivery, antibacterial coatings, healing wound dressings, lab- on-a-chip

Dendrimers in technology assay kits

bio-Biocompatible implants, magnetic nanoparticles as imaging agents, nanocoated stents for tissue engineering, non- invasive therapeutics using heat to treat cancer

Smart materials for organ and limb replacements

Low impact

Strength increase/crack prevention, self healing additives to cement, exterior protection coatings, anti-graffiti coatings, self cleaning glass, nanoadditives to steel, heat blocking windows

Aerogels for insulation, heat resistant materials

Self repairing structural materials

Smart sensors to monitor fracturing and flexibility, intelligent buildings

Healthcare,

Self cleaning fabrics, wound dressings, healing textiles, antibacterial garments

Fire retardant textiles

Wearable computers, smart clothing, bioresponsive clothing

Self healing textiles

Security of water supply

Environment and Water

Air filtration, titania photocatalysts, nanoporous membranes for filtration

Nanoscale absorbents Desalination of sea water using nanomembranes;

nanomaterial based products for water treatment (Nanofer)

Water purification using bio-nano, NEMS for sensing and acting on pollution,

Growing population

Food and Drink

Nanoemulsions, nanocomposite barrier packaging, nanoporous membranes for processing

Super hydrophobic surfaces, controlled release seed coatings, pathogen detection with nanoparticles

Nanoencapsulated nutraceuticals, programmable barriers in coatings for atmospheric control, electronic tongue

Smart paper for information display and packaging

Quality of life

Consumer Goods and Household Care

Easy clean coatings for surfaces, self cleaning tiles, nanosilver cosmetics and oral care,

nanoencapsulation for beauty care, nanocomposite sporting goods

Nanocoated wipes for surfaces, self cleaning sprays (short lasting)

Nanoencapsulation for household hygiene and fragrancing

Long term self cleaning wipes and sprays, nanoelectronics in leisure equipment

Security

Brand and Product Security

Intelligent inks, nanoparticles for security printing

Paper like electronic displays for condition information, magnetic nanoparticle tagging

Decontaminating surfaces, nanoparticle chemical markers

Smart dust for decontamination

Transport,

Nanofillers for structural enhancement, anti bio- fouling and corrosion resistant coatings

Thermal barrier materials for engines

Fuel cells, embedded sensors Cloaking for warships

Intelligent

Nanofillers for structural enhancement, fuel additives, scratch proof

Thermal barrier materials for engines

Shape memory alloys, fuel cells Smart tyres

Table 6

Technology Readiness Levels (TRL)3

Technology Strategy Board data3

which classifies the opportunity according to the current TRL is shown

in Table 6

The important observation here is the wide range of opportunities at different TRLs ranging from basic research through to near market readiness The volume supply of commercial nanomaterials into mature markets such as carbon black and silica sols should also not be overlooked in this review

This spread of opportunities at different TRLs emphasizes the need for managed private and state funding

in order to maximize the UK position

in IP generated, know how and the

associated commercial position arising within a highly competitive market

The Taylor Report2 emphasised the multidisciplinary nature of the opportunities and there exists much scope for engaging the technology transfer, knowledge transfer and training instruments to make best use

of the underlying science, technology and innovation capacities in the

UK In the end, it is the availability

of people with necessary skills that allows translation of opportunity into exploitation Skills and training are necessary but not sufficient conditions for this Given the global context it

is also clear that it is unrealistic to expect that the UK can achieve strong positions in all of these domains, and that prioritisation will be needed This will be a key challenge

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KNT - Photonix

Eminate

The Bio Nano Centre NanoCentral

Comina

NanoForce Technology CEMMNT Safenano

Qudos National Prototyping Facility

Cyclofluidic

10 UK Capability and

Capacity to Exploit

The capability of the UK to exploit the

emerging opportunities highlighted

depends on a number of factors:

• That there exists a market

opportunity for application of a

nanotechnology or nanoenabled

product to have impact

• That market opportunity is

not excessively constrained by

competitor activity

• That this opportunity is relevant

to a working and responsive UK

supply chain

• That translation of the concept

from low to high TRLs can be

supported by robust academic

and industrial research

• That eventual exploitation is not

constrained or blocked by any

of the barriers (health, insurance,

environmental etc) which are

considered elsewhere

• That there is adequate support in

terms of facilities, funding, skills and

direction

• That innovation is protected by

commensurate patent actions

The combination of constraints applies

some natural filters which lead to a

prioritisation of the UK exploitation

route These factors are considered in

more detail:

• There is good documentation

of the market opportunity

but forecasts need to be

examined critically in terms of

the constraints which might

limit market uptake The size of the market opportunity is one

of the key determinants for prioritizing innovation activity so good market data and business awareness is essential The other main determinant here is time to market, which likewise might be affected by potential exploitation barriers, such as insurance and regulation Ranking by market size might be misleading because of segmentation

• The competitive position is fast moving and time to market is more important than in many other industrial contexts

• The health of the supply chain

is probably the strongest determinant The most important supply chains for the UK include Aerospace, Automotive, Chemicals, Consumer Products, Energy, Environmental, Healthcare and ICT The published R&D scoreboards of companies provide

an indication of the readiness of a supply chain to innovate either by itself or in concert with academic groups

• The nanoscale technology industry includes a mix of university spin-outs, small to medium-sized enterprises (SMEs), and large, multinational companies that may focus a percentage (usually < 2%) of their research and development work

on applications incorporating nanoscale technologies

• The UK has strong academic groups working in the field The Nanotechnology KTN database indicates that there are over 60 academic groups engaged in nanotechnology at some level

The UK science base in selected nanoscale technology areas is strong and initial activities to assist commercialization are in progress through the cross research council nanotechnology coordination group

• In forthcoming years, the ability

to maintain and strengthen the research base across disciplines, and to accelerate the translation

of new discoveries into valuable products, will be two key factors for the UK to achieve a position

as a world leader in selected areas

of nanoscale technology

The 23 MNT open access facilities

in the UK, shown in Figure 8, are supported by combined Technology Strategy Board, RDA and industrial funding - £150M over 3 years Together, with other relevant infrastructure including the DIAMOND light source, the National Measurement System and Health and Safety Laboratory, this represents a robust facilities platform for innovation

UK funding is substantial but still lags behind several competing countries, both in terms of absolute and per capita spend

Skills and training are key issues which may not be adequately supported in

Figure 8

Geographical representation

of the 23 MNT Centres in the UK3

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